Case Law Details
CA Sandeep Kanoi
Hon’ble Delhi HC has held in the case of ‘Bharti Gupta Ramola Vs. CIT’ that For computing holding period of asset both date on which asset is acquired & date on which said asset is sold or transferred are not to be excluded.
During the financial year 2005-06, the appellant had sold two mutual fund instruments on 29th September, 2005 and 14th October, 2005 and had shown the income earned as long term capital gains of Rs.18,31,241/- and Rs.2,72,386/- respectively. The aforesaid mutual fund instruments/units were purchased by the appellant assessee on 29th September, 2004 and 1 4th October, 2004.
In the return of income filed by the appellant on 31st July, 2006, the appellant treated gain of Rs.18,31,241/- as exempt under Section 10(38) of the Income Tax Act, 1961 (Act, for short) as STT was paid. The gain of Rs.2,72,386/- was also treated as long term capital gain and claimed to be exempt under Section 54EC of the Act. The Assessing Officer in the assessment order treated the two gains as short term capital gains on the ground that the instruments had not been held for a period of more than 12 months immediately preceding the date of transfer.
In the first appeal, the assessee succeeded and it was held that the instruments were held for 12 months and the gains were, therefore, not short term capital gains. Revenue preferred an appeal and by the impugned order has succeeded before the tribunal. The findings of the Assessing Officer has been restored.
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